Tuesday, October 15, 2013

Starting Your Business with a Clean Slate

Breaking up is hard to do. That's true for
relationships and also for ending your contract with an employer.

Whether
you're moving on to start your own business or have been hired at a company
that could be considered a competitor, you'll want to make sure you can start your
new job with a clean slate.

A lot of the following issues might be
covered in your employee contract. It's
worth discussing with an experienced lawyer to make sure you can get up and
running without a potential lawsuit slowing you down.

Here's what to look out
for:

Intellectual
Property

It is obvious that
anything you created or invented during work hours for your company is owned by
that company. This would be considered intellectual property. Where it gets
fuzzy is any work you did on the side during off hours. Things could be further
complicated if you used any type of company equipment like a computer or
software for your own inventions. There could be a strong claim for that
property you created.

Non-Competition

It stands to reason that if you're good at your
current job, then your start-up would be related to your skill set. That might
be cause for concern if you are going to be in direct competition with your
current employer. Most contracts have a non-compete clause that can last up to
a year. It might take that long to line up your investors and launch your
business but you'll you might be restricted from doing any kind of work that is
deemed "the competition." Worst-case scenario, you sit out the year
and spend it planning.

Non-Solicitation

This is often referred to as the "poaching
clause." Just because you've created solid working relationships with a
lot of clients doesn't mean you can "steal" them all for your new
business. It's a tricky area. A client can go to any business they want as long
as they don't violate a contract. The mere fact that you're starting up on your
own might be enough incentive for the client to jump ship. From a legal
standpoint you'll be covered if you don't actively solicit that client.

If you have doubts about any of these areas then
you'll be better off checking with a lawyer. Additionally, you should consider
your future plans when accepting any job. If your goal is to become your own
boss then a restrictive employee contract which prevents that from happening
might not be worth signing.

There is nothing wrong with negotiating. Just make
sure you're not getting trapped into a contract which will stop you from
pursuing your dreams.

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